Unrestricted cash contribution received from donors are to be reported as increase in net cash provided by operation.. Cash flows from operating activities would include both the cash re
Trang 1CHAPTER 22 Multiple Choice 22-1: b (P500,000 – P300,000)
22-2: d.
The total tuition fees for educational and general purposes
22-3: d (P1,240,000 – P160,000)
22-4: a.
Unrestricted cash contribution received from donors are to be reported as increase in net cash provided by operation
22-5: d.
The remaining contribution of P5,000 on December 31, 2004
22-6: b.
Unregistered pledges from donors are treated as revenues at the time of the pledge
22-7: d.
Bad debts are treated in the usual manner as expense
22-8: a
As of July 31, 2004, all of the funds are properly includible in the Plan Funds, for a total of P900,000
22-9: c (P800,000 – P110,000)
22-10: d.
Patient revenues (net of charity care) P 600,000
Trang 222-12: c.
The contributed services are debited to Salary Expense account and credited to Contribution Revenue account
22-13: c.
The net effect on unrestricted net assets of spending P10,000 on research is zero
22-14: b (P5,000,000 + P50,000)
The P1,000,000 contribution from the donor, who stipulated that the contribution be invested Indefinitely, should be reported as permanently restricted revenue
22-15: c.
22-16: b
Both are treated as a financing activity on the statement of cash flows
22-17: a.
Cash flows from operating activities would include both the cash received from patient service Revenue of P300,000 and the cash received from gift shop sales of P25,000
22-18: b.
Cash received from patient revenue (collection of receivables) and from tuition revenue are both included in the amount reported for cash flows from operating activities The other cash receipts would be reported as increases in cash flows provided by financing activities
22-19: b.
Expirations of donor restrictions on temporarily restricted net assets should be reported on the Statement of operations as net assets released from restrictions
22-20: c.
Current funds revenues include (1) all unrestricted gifts and other unrestricted resources earned during the reporting period, and (2) restricted current funds to the extent that such funds were expended for current operating purpose Therefore, the amount that should be included in current funds revenue is:
Trang 3Problems Problem 22-1
Conference, conventions and meetings 5,000
Accounts payable or accrued expense payable 6,000
Fund balance – Restricted to purchases
Trang 4Problem 22-2
To record gross patient service revenue for the month
at full rates
To record receivable from Social Medicare
To record contractual adjustments allowed
To provide allowances for doubtful accounts
To record donated services (10,000 – 200)
To record pledges received from donors
To record pledges collected
To provide doubtful pledges
To record receipt of cash from restricted fund
Trang 5Problem 22-3
Plant Fund Ledger Account:
To record acquisitions of computers from unrestricted fund
To record construction of new building financed in
part by 5% mortgage note payable
Quasi-Endowment Fund Ledger Account:
Payable to Unrestricted fund 10,000
To record sale of investments at a gain, the use of
which is unrestricted
Unrestricted Fund Ledger Account:
To record acquisitions of computers to be carried in
Plant Fund
To record receipt of unrestricted gift
To record investment gain receivable
Trang 6Problem 22-4
Nonprofit Trade Association
Statement of Activities
Year Ended June 30, 2004
Revenues and Gains:
Expenses:
Nonprofit Trade Association
Statement of Financial Position
June 30, 2004
ASSETS
Current assets
Cash
P 7,000
Trang 7Problem 22-5
Children Association
Statement of Activities
Year Ended December 31, 2004
Changes in unrestricted net assets:
Revenues and gains:
Expenses:
Management and general expenses 47,000
Changes in temporarily restricted net assets:
Expenses:
Management and general expenses P 4,000
Net assets, beginning of year (P12,000 + P26,000 + P3,000) 41,000
Children Association
Statement of Financial Position
December 31, 2004
ASSETS
Bequest and interest receivable (P5,000 + P1,000) 6,000
LIABILITIES AND NET ASSETS
Accounts payable and accrued liabilities (P50,000 + P1,000) 2,000
Total liabilities
Net assets:
Trang 8Problem 22-6
San Pedro Hospital
Statement of Financial Position
June 30, 2004
ASSETS
Current assets
Accounts receivable (net of allowance of P5,000) 20,000
Property, plant and equipment (net of accumulated depreciation of P140,000) 160,000
LIABILITIES AND NET ASSETS
LIABILITIES
Current liabilities:
NET ASSETS